Citizens take on DC Government over Tax Giveaways to Defense Contractor Northrop Grumman

[Mari333]

This company with $34 billion in revenue and $2.5 billion in profits—most of it coming from government contracts--wanted a government handout. Company spokesperson Randy Belote said it is looking not only for the most suitable site with an abundance of amenities but also the best financial incentive.

That set off a bidding war. DC was the first to come up with a corporate welfare package of $25 million--$19.5 million in real estate tax breaks and up to $5.5 million in grants to pay for relocation costs, including build-out, furniture, equipment, technological upgrades and construction.

Championed by Councilmember Jack Evans, the offer did not come with any analysis of the benefits for the city, nor any comparison of what the funds invested elsewhere could generate. It requires that the company employ a minimum of 250 people, leaving the city paying a whooping $100,000 per job, but does not even stipulate that the jobs be given to DC residents. Evans admits that most jobs will be filled by executives and staff relocating from Los Angeles, with only about 100 new jobs created, and the new employees may well live outside the city.

The taxpayer giveaway has incensed small businesses, watchdog groups and peace activists, who formed a new coalition called CENTS—Coalition to End Needless Tax Subsidies. They have been meeting with the mayor and councilmembers, testifying at hearings, holding press conferences and educating the public.











http://www.commondreams.org/view/2010/03/12-8